Medicaid?

[gambrinus]

Just had my first issue with a lead wanting to check with her Medicaid counselor before buying a policy. She calls me today and tells me that her counselor told her that a life insurance policy would count as an asset and could jeopardize her medicate eligibility and recommended against buying a policy. Counselor then told her that the only way around it was a pre-paid plan at a funeral home. Is Any of this true???

 

[inreverse]

Have a family member that she trusts be the owner

 

[titeye]

Just had my first issue with a lead wanting to check with her Medicaid counselor before buying a policy. She calls me today and tells me that her counselor told her that a life insurance policy would count as an asset and could jeopardize her medicate eligibility and recommended against buying a policy. Counselor then told her that the only way around it was a pre-paid plan at a funeral home. Is Any of this true???

Why not read up on Medicaid eligibility rules for that state and how permanent life insurance policies affect benefits. That way, you become the expert instead of a Medicaid counselor deciding whether your prospect needs your policy.

 

[Life Hawk]

Just had my first issue with a lead wanting to check with her Medicaid counselor before buying a policy. She calls me today and tells me that her counselor told her that a life insurance policy would count as an asset and could jeopardize her medicate eligibility and recommended against buying a policy. Counselor then told her that the only way around it was a pre-paid plan at a funeral home. Is Any of this true???

It is simply based on Cash Value, when asset evaluation comes up, there is a question regarding life insurance and the amount of cash value. It is seen as an asset that belongs to the client.

@inreverse has a great idea. She becomes the payor but not the owner. When asked if she owns a life policy the answer is no. Down side is that there need to be trust between the covered/payor and owner.

Or... she could ask her Medicaid counselor to pay for her funeral.

 

[Life Hawk]

Counselor then told her that the only way around it was a pre-paid plan at a funeral home.

The folks they have answering questions are a one way ticket to stupid land, and use a big hammer to frighten their clients. Makes my skin boil!

I have seen this before in my own area... they think they are helping their people all along don't have a clue.

Government workers with no clue... Hmmm seen that many a time. Why do some people waste time on an education!

Can you tell this is irritating to me?

 

[gambrinus]

I tried to research myself as if I was some 65yr old disabled woman trying to not be a burden on her children by buying a policy.... grrrrrrr The Government sites seem to be designed to confuse you.... and I have an advanced degree. ( not bragging, as I'm here with you all.. just stating the difficulty of navigating this bs )

 

[Tahoe Ray]

Have a family member that she trusts be the owner

Yeah...just do this.

 

[Travis Price]

The folks they have answering questions are a one way ticket to stupid land, and use a big hammer to frighten their clients. Makes my skin boil!

That's not true.. the Counselor gave correct information.

Whole life insurance accrues case value and can effect eligibility for Medicaid during an asset review if the face amount is over a certain amount.

I'm sure OP wasn't selling her a 1,500 policy, so the client probably told the counselor how much.. because that's the first question I'd ask.

What the counselor is saying is if she doesn't want to worry about losing eligibility ever, she needs preneed or term.. which doesn't give the client any cash value for themselves.

Program eligibility can change, because if a politician gets a hair up their ass they can change a program.

No government employee would tell a client to have someone else own the policy, as that would be a government official supporting a work around that isn't supported by government policy.

PS: I'm a government employee. There are things that people do that I know is technical valid, but doesn't fall within the program. So I can't suggest or condone it when I'm in an official capacity.

For example, someone asking me if X Medicare plan is a good idea. Sorry, I.cant endorse any private insurance plan (even though usually if they're talking to me, MA will screw them up.)

Government employees know the work around more than you know. They'll just never tell you them.

 

[Lawsonhj1]

I believe "would" count as an asset should be "could" count as an asset. Only the cash value "should" count as an asset. I am open to learning though.

 

[shonceman]

I believe "would" count as an asset should be "could" count as an asset. Only the cash value "should" count as an asset. I am open to learning though.

You're absolutely correct. But I've run into more than my share of clueless eligibility workers who think the entire face amount counts as an asset. I've had to get on the phone with Social Services many times to explain it. They haven't always believed me, so I usually encourage them to check with their superiors to see if I'm right. I've never lost that argument! To be fair, I haven't had one of those conversations in quite a while. So they must be training them a little better nowadays (at least in my area).